Author(s):

A new report on siting and regulating carbon capture, carbon dioxide (CO2) pipelines, and other associated infrastructure needed for deployment of enhanced oil recovery (EOR) and other geologic storage was recently published week by the U.S. Department of Energy (DOE) .

This report is timely given the emphasis of the new Administration and Congress on our nation’s infrastructure and domestic energy production.

Carbon capture from power plants and industrial facilities represents a critical energy, environmental, and economic strategy that can boost domestic energy production, protect and create high-paying jobs, and significantly lower net carbon emissions on a full lifecycle basis.

The report summarizes information presented and discussed at a 2016 workshop sponsored by DOE and staffed by the Great Plains Institute and the National Energy Technology Laboratory.

The workshop gathered subject matter experts and leaders from industry and nongovernmental organizations, along with state and federal officials who have jurisdiction over energy infrastructure planning, siting, and economic development.

The workshop aimed to foster communication, coordination, and sharing of lessons learned and best practices among states, federal agencies, and private entities that are involved in siting and regulating carbon capture, CO2 pipeline infrastructure, and EOR and other geologic storage.

Participants shared their perspectives and expertise on a range of key issues, including:

the status of existing infrastructure

the policy landscape

investment opportunities

common practices and lessons learned for siting and permitting CO2 pipelines and storage

Each section of the report provides detailed background on these critical topics and shares the opportunities discussed at the workshop in each area.

The report begins with a summary of key findings from the workshop discussion, including these findings on policy and planning:

incentives at the Federal and State level are key drivers for carbon capture, utilization, and storage (CCUS) development and can play a pivotal role in infrastructure buildout, particularly during periods with low oil prices.

Federal policy-makers can create a positive regulatory and policy environment for CCUS infrastructure development, supplemented with complementary efforts by State policy-makers.

Federal incentives could serve as a catalyst for CCUS deployment if the incentives are structured to provide financial certainty for private investors and are sufficient in value to close the cost gap between the cost of capturing, compressing, and transporting CO2 and the price of delivered CO2 paid by EOR project operators. However, existing Federal incentives, such as the Section 45Q Tax Credit for Carbon Dioxide Sequestration, are insufficient to fully support CCUS development.

there is an opportunity to use a systems approach for pipeline mapping, planning, siting, and development involving collaboration among private industry, State, and the Federal Government that leads to efficient and equitable multi-user regional CO2 pipeline networks.

As the new Administration and Congress determine next steps in pursuing their energy and infrastructure agenda, this report highlights a compelling path for achieving a win-win-win on jobs and the economy, domestic energy production, and the environment.

The Great Plains Institute co-convenes the National Enhanced Oil Recovery Initiative, a coalition of top energy, industrial and technology companies, industrial labor unions, and national environmental organizations that supports federal incentives for the deployment of carbon capture at power plants and industrial facilities.